[Update] ZF may spin off Electrified Drive Technologies division
ZF is apparently evaluating a full spin-off of its Electrified Drive Technologies division under a project called “Verde”. ZF points out that such move wouldn’t affect the Commercial Vehicles division as it concentrates on a branch of the company targeting the passenger car sector.
ZF is apparently evaluating a full spin-off of its Electrified Drive Technologies division under a project called “Verde”. The news comes from German newspaper Handelsblatt, quite close to the global technology company. ZF points out that such move wouldn’t affect the Commercial Vehicles division as it concentrates on a branch of the company targeting the passenger car sector.
According to our sister platform Sustainable Bus, ZF management would be aiming to complete the spin-off this year, with a potential sale by 2026. Hyundai Group and Foxconn are rumored buyers, still according to the Handelsblatt, but no agreement has been confirmed. The division holds €30 billion in orders but currently faces profitability concerns.
The spin-off due to cost saving issues
Indeed, ZF announced in July 2024 a company-wide restructuring to consolidate German locations and reduce up to 14,000 jobs by 2028. The company cited cost pressure, weak EV demand, and declining transmission volumes for conventional and hybrid vehicles as key challenges. The restructuring could impact over 32,000 employees and represents €11.5 billion in revenue.
